With the 2017 tax incentives, small business owners could be eligible for up to a total of $510,000 in tax deductions when they purchase qualifying GMC vehicles for their business before 12/31/17. And they can stack up select Business Choice Offers and other compatible small business incentives for an added bonus.
WHAT IS TAX SECTION 179?
The Section 179 Deduction was enacted as part of the IRS tax code in 2008 to help small businesses with their vehicle and equipment purchases. This law allows your commercial and fleet customers to claim the full purchase price of certain GMC vehicles totaling up to $510,000 (for eligible vehicles) as a tax deduction.1
The amounts that can be deducted depend on the vehicles purchased. For example, passenger vehicles bought by a business may qualify for deductions of $11,560 or $25,000. A business that spends up to $2,030,000 on multiple vehicles can take a deduction of up to $510,000.
See the allowed amounts for each eligible GMC vehicle in the chart below.
ADDITIONAL TAX SECTION 179 FACTS
• Vehicle titles must be in the company’s name
• An eligible vehicle must be used for business at least 50 percent of the time
• Businesses can still take advantage of certain other incentives and Business Choice offers in addition to these possible tax savings
For more information please see your GMC dealer or visit: www.gmc.com/tax-deductions.html
1 Each individual’s tax situation is unique. Therefore, please consult your tax professional to confirm vehicle depreciation deduction and tax benefits. For more details, visit irs.gov. 2 For vehicles that qualify as sport utility vehicles, including certain trucks and vans, under the Internal Revenue Code, the maximum amount that may be expensed is $25,000 of the total purchase price. The $25,000 expense cap contributes to the $510,000-dollar limit and $2,030,000 investment limit under Section 179. 3 For vehicles that qualify as passenger automobiles under the Internal Revenue Code, there is a $11,560 per-vehicle depreciation deduction cap for certain SUVs, trucks, and vans placed in service during 2017. 4 The tax incentives are available for depreciable tangible property that is acquired by purchase for use in the active conduct of a trade or business. Additional limitation based on purchases. For the 2017 tax year, the aggregate deduction of $510,000 under Internal Revenue Code Section 179 is most beneficial to small businesses that place in service no more than $2,030,000 of Section 179 property during the year. For every dollar spent on Section 179 property in excess of the overall limit of $2,030,000, the $510,000 expense-tax deduction decreases by a dollar. Certain vehicles, models, and restrictions apply. Consult your tax professional for details.